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DECISION

Promulgating policies on investment supports and benefits for households, village communities and organizations joining the project on forests for livelihood improvement in the Central Highlands

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 26, 2003 Land Law;

Pursuant to the 2004 Forest Development and Protection Law;

Pursuant to Loan Agreement No. 2269-VIE(SF) signed between the Socialist Republic of Vietnam and the Asian Development Bank (ADB) on December 7, 2006, on the Forests for Livelihood Improvement in the Central Highlands Project;

Pursuant to the Prime Minister's Decision No. 813/QD-TTg of June 7, 2006, approving the prefeasibility study report on the Forests for Livelihood Improvement in Central Highlands Project;

Pursuant to the Government's Decree No. 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance (ODA);

Pursuant to the Prime Minister's Decision No. 186/2006/QD-TTg of August 14, 2006, promulgating the Regulation on forest management;

At the proposal of the Minister of Agriculture and Rural Development,

DECIDES:

Article 1.- Scope of regulation and subjects of application

This document provides for policies on investment supports and benefits for households, village communities, forest management boards, forestry farms, forestry companies and small- and medium-sized enterprises which are allocated forests and forestland (below collectively referred to as forest owners) for forest plantation and protection, zoning off for forest regeneration, combined agro-forestry production, and improvement of mixed gardens under the Project on Forests for Livelihood Improvement in the Central Highlands in Gia Lai, Kon Tum, Dak Lak, Dak Nong, Lam Dong and Phu Yen provinces.

Article 2.- Funds for investment supports

The funds to support investment in forest development and protection activities shall be taken from the Asian Development Bank's ODA loans and contributed funds from the state budget; the funds for other technical assistance activities shall be taken from the Trust Fund for Forests (TFF) and the Vietnamese Government's fund contributed to the Project.

Article 3.- Policies on investment supports

Forest owners are entitled to receiving funds in Vietnam dong converted from the equivalent funds in US dollars (USD) according to the exchange rate at the time of payment as follows:

1. For special-use forests

The Project assists highly prioritized biodiversity reserves in accessing capital of the Vietnam Conservation Fund in order to support funds for adopting conservation measures inside and around special-use zones according the approved feasibility project's investment schedule; funding estimates shall be approved by provincial-level People's Committees.

2. For protection forests

a/ Forest protection: the average support level equivalent to USD 7/ha/year.

b/ Zoning off for forest regeneration:

- Zoning off for forest regeneration without supplementary plantation: the average support level equivalent to USD 15/ha/year.

- Zoning off for forest regeneration with supplementary plantation: the average support level equivalent to USD 200/ha in the first year for supplementary plantation, the support level equivalent to USD 30/ha/year in the next two years, and equivalent to USD 15/ha/year in the remaining years.

The support level and time for implementation of each item above shall be specified by provincial-level People's Committees.

c/ Consolidated forestation: the average support level equivalent to USD 500/ha.

On the basis of the soil status of each area and plant species, provincial-level People's Committees shall decide on the investment level; and the implementation schedule for each item entitled to investment support.

3. For production forests

- For households and village communities: the average support level equivalent to USD 500/ha for consolidated plantation of fast-growing trees; USD 300/ha for forestation by mode of combined agro-forestry production; USD 70/ha for improvement of mixed gardens.

- For organizations: the average support level equivalent to USD 400/ha/year for consolidated plantation of fast-growing trees.

- The investment level for each plant species and area shall be specified by provincial-level People's Committees.

Article 4.- Policies on benefits

1. For special-use forests

Forest owners may reasonably use natural resources in special-use forests under the Prime Minister's Decision No. 186/2006/QD-TTg of August 14, 2006, promulgating the Regulation on forest management.

2. For protection forests

a/ Protection forests being natural forests (including forests zoned off for regeneration)

Forest owners may exploit, make full use of, and salvage dead trees, decayed trees, falling trees and trees in areas with a density higher than the prescribed level. Forest owners may exploit non-timber forest products other than precious and rare plants and animals prescribed in the Government's Decree No. 32/2006/ND-CP of March 30, 2006, on management of endangered, precious and rare forest plants and animals. When forests are up to protection standards, they may selectively log timber under Decision No. 186/2006/QD-TTg above. Forest owners are entitled to the value of exploited products under current regulations.

b/ Protection forests being planted forests

Forest owners may exploit intercropped plants and subsidiary plants, prune, salvage and make full use of timber and non-timber forest products and enjoy 100% of the product value. When forests are up to protection standards and major plants are up to exploitation standards, forest owners may selectively log major plants under Decision No. 186/2006/QD-TTg above. Forest owners are entitled to the value of exploited products under current regulations.

c/Technical requirements, the order of and procedures and competence for permitting principal exploitation, making full use and salvage of natural and planted forests being protection forests comply with the Ministry of Agriculture and Rural Development's current regulations.

3. For production forests being planted forests

Forest owners may exploit and make full use of planted forests in the course of nurturing them and enjoy 100% of the products. When forests are up to exploitation standards, forest owners may exploit major plants fully or selectively and enjoy the products after paying as follows:

a/ Households and village communities shall pay in Vietnam dong a value of exploited products equivalent to USD 150/ha according the exchange rate at the time of payment to commune development funds.

b/ Organizations shall pay in Vietnam dong a value of exploited products equivalent to USD 250/ha according the exchange rate at the time of payment to provincial state budgets or provincial forestry development funds (if any).

c/ For project-funded forest acreages which are planted by mode of combined agro-forestry production or improvement of mixed gardens, households and village communities are entitled to the entire value of exploited products.

d/Technical requirements, the order of and procedures and competence for permitting principal exploitation and making full use of planted forests being production forests comply with the Ministry of Agriculture and Rural Development's current regulations.

4. Other benefits

Other benefits comply with current regulations and provisions specified in the approved prefeasibility project report.

Article 5.- Obligations of forest owners joining the Project

1. To fully perform commitments specified in the contract signed with the Project; to use forests and forestland for proper purposes in order to conserve and develop sustainably forests. When breaching commitments or causing damage to concerned parties, they shall pay compensation according to law.

2. Forest owners shall pay their own money to replant forests or carry out measures to regenerate forests within 1 year after exploitation.

3. To make contributions to the Forest Development and Protection Fund.

4. To perform other obligations according to current regulations and provisions specified in the approved prefeasibility project report.

Article 6.- Organization of implementation

1. The Ministers of Planning and Investment; Agriculture and Rural Development; and Finance, the Governor of the State Bank of Vietnam, and presidents of the People's Committees of Gia Lai, Kon Tum, Dak Lak, Dak Nong, Lam Dong and Phu Yen provinces shall implement this Decision.

Article 7.- Implementation effect

This Decision takes effect 15 days after its publication in "CONG BAO."